Home Health & Hospice Week

HHA, DME changes set to take effect after all.

An HHA rate freeze and DME capped rental restrictions are now all but final.

The House of Representatives passed the Deficit Reduction Act by a 216-214 margin on Feb. 1. Now that the House and Senate have both approved the finalized budget legislation for 2006, it will go to the president, who is expected to sign it into law quickly.

The bill will roll back the 2.8 percent increase to Medicare payment rates that home health agencies received Jan.1. Instead, HHAs will receive payments at 2005 levels for another year.

Lawmakers did throw rural agencies a bone by passing a 5 percent one-year add-on for patients served in rural areas. But the rural gain--estimated at an extra $12 million per month in 2006--is far outweighed by the loss of the $31 million per month inflation update, notes the National Association for Home Care & Hospice. And the add-on is guaranteed for only one year.

The Centers for Medicare & Medicaid Services hasn't yet announced how it will implement the 2006 rate change, since agencies are already a month into the year.

Under the bill, suppliers will see ownership of durable medical equipment capped rental items transferred to beneficiaries after the 13th month of rental and ownership of capped rental oxygen equipment transferred to benes after 36 months. The change burdens home care patients and hurts providers, protests the American Association for Homecare. 

Note: For more details on the bill, see next week's issue of Eli's Home Care Week.